Construction shares have been rising ever since the government gave its consent to restart a $1.4 billion port city deal on hopes the sector would see a boom, brokers said.

Sri Lanka’s government on Aug.12 agreed on a new version of its $1.4 billion real estate agreement with China after changing the terms and blocking the outright sale of land – part of a project covering a square mile right next to the capital’s port.

The benchmark Colombo stock index ended 0.14 percent higher, or 8.99 points, at 6,602.24, its highest close since May 20.

The index rose 1.23 percent this week, its third straight week of gains.

“Today the market is up on the bullish buying interest in the construction sector,” said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

“There could be some profit-taking but we don’t see huge downside, with investor confidence improving on the overall economy.”

Turnover stood at 1.45 billion rupees ($9.97 million), nearly double this year’s daily average of around 743.8 million rupees.

CNN: Sri Lanka Tour

The Indian government has built 10,250 houses last year for internally displaced people in Sri Lanka's northern and eastern provinces. "Another 27,750 houses will be constructed.....! Indian Deputy High Commissioner in Jaffna transferred to Guyana....! Minister G.L.Peries to visit China...!